Chanel lands trophy store in $75m luxury deal

Chanel, the renowned French luxury fashion brand, has recently made headlines by investing a significant sum of $75 million to purchase its long-standing boutique located at the intersection of Russell Street and Flinders Lane in Melbourne's Central Business District (CBD). This move signifies a strong commitment to the Australian market and underscores the growing appeal of Melbourne as an international destination for luxury retailers.

The boutique, which was previously leased by Chanel, was first opened in 2011 and has been a successful part of the brand's global retail portfolio. The decision to buy the property outright is an indication of Chanel's confidence in the continued growth and vitality of the Melbourne market.

The 10-year-old building, which spans over three levels and covers approximately 860 square meters, was purchased from the Dexus Property Group. The sale represents one of the largest transactions for a single retail property in Melbourne's history, further highlighting the increasing demand for prime retail space in the city's CBD.

Melbourne's status as a popular destination for international tourists and locals alike, coupled with its reputation for cultural and culinary offerings, makes it an attractive market for luxury brands. The city's vibrant arts scene, world-class events, and diverse demographic have contributed to its growing allure for global retailers.

Chanel's investment in this prime location is expected to bolster the brand's presence in the region and provide an enhanced shopping experience for its customers. The acquisition also serves as a testament to the brand's long-term commitment to the Australian market and its belief in the potential for continued growth in the region.

The transaction was facilitated by CBRE's Retail Investment team, who acted as the exclusive selling agents for Dexus Property Group. The sale marks another milestone for both Chanel and Melbourne's luxury retail sector, further solidifying the city's position as a leading destination for international luxury brands.

In conclusion, Chanel's recent acquisition of its long-standing boutique in Melbourne for $75 million is a significant investment that underscores the brand's confidence in the Australian market and the growing appeal of Melbourne as an international destination for luxury retailers. The sale represents one of the largest transactions for a single retail property in Melbourne's history and is expected to bolster Chanel's presence in the region and provide an enhanced shopping experience for its customers.